Present value and break-even interest consider a firm with


Present Value and Break-Even Interest Consider a firm with a contract to sell an asset for $140,000 three years from now. The asset costs $91,000 to produce today. Given a relevant discount rate on this asset of 13 percent per year, will the firm make a profit on this asset? At what rate does the firm just break even?

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Finance Basics: Present value and break-even interest consider a firm with
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